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Combating Money Laundering and Terrorism Financing: Albania’s Compliance Program Management
In its ongoing efforts to combat money laundering and terrorism financing, Albania has established a robust regulatory framework that requires financial institutions and other entities operating in the country to implement comprehensive compliance programs.
The Financial Intelligence Unit of Albania (FIU-Albania)
At the heart of this framework is the FIU-Albania, which serves as the central authority for receiving, analyzing, and disseminating reports related to suspicious transactions, money laundering, and terrorist financing.
Customer Due Diligence Requirements
Under Albanian law, financial institutions and other entities must adhere to specific customer due diligence requirements, including:
- Rigorous identification and verification of customer identities
- Understanding the aim of the business relationship
- Continuous monitoring of transactions
- Updating customer records
In addition, entities are required to report suspicious activities and cease maintaining anonymous accounts in cases of non-compliance.
Criminalization of Money Laundering
The Albanian Criminal Code criminalizes laundering proceeds of a criminal offense, involving:
- Transferring property
- Concealing its true nature
- Conducting financial transactions to avoid reporting
- Advising or inciting public calls for such offenses
Regulation on Customer Due Diligence (CDD)
The CDD regulation outlines guidelines for conducting customer due diligence procedures, including:
- Identification and verification of customer identity
- Collecting and verifying customer information
Regulation on Reporting and Record Keeping
The Regulation on Reporting and Record Keeping prescribes procedures and requirements for reporting suspicious transactions and activities to the FIU-Albania.
Enhanced Due Diligence Measures
The Albanian government has introduced enhanced due diligence measures for dealing with Politically Exposed Persons (PEPs) and sanctions, as well as penalties for entities and individuals found in violation of AML/CTF regulations under the law.
Progress and Challenges
According to a recent report, Albania has made significant progress in resolving technical compliance issues, with most shortcomings addressed by the end of the third year following the Mutual Evaluation Report’s adoption. However, failure to follow AML/CFT Law’s CDD and record-keeping obligations can still result in penalties, emphasizing the importance of effective compliance program management.
Conclusion
Albania’s commitment to combating financial crimes demonstrates its dedication to maintaining a stable and secure financial environment. These regulations are crucial in preventing money laundering and terrorism financing, and their implementation is essential for ensuring the integrity of the country’s financial system.